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Fed Rate Cuts: Recession Alarm Bells? 🚨 But Markets Might Be TOO Optimistic!
🔥 Markets are betting BIG on Fed rate cuts!
📉 Futures prices scream: “Recession coming! Rates MUST fall!”
...But wait! The Fed & market stress gauges whisper: “Not so fast!” 🤔
❓ What’s Happening?
Traders Expect CUTS: Futures show deep rate cuts priced in for 2024 — like a classic recession playbook. 📉➡️💸
Fed Pushes Back: Recent Fed minutes & speeches hint: “Inflation’s sticky! We’re patient.” 🗣️⏳
Risk Gauges Are CALM: Fear index (VIX)? Credit spreads? Not flashing red! 🟢 …So why panic-cut?
⚠️ The BIG Danger: Over-Hyped Hopes!
Are markets overestimating how fast/easy cuts will come? Signs point to YES!
👉 If the Fed cuts SLOWER than expected…
Stocks could correct 📉
Crypto volatility spikes 🌪️
“Soft landing” hopes shake 😰
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